Consumer spending on gaming hardware and software in the United States experienced a sharp downturn in July, according to new data from industry analysts at Circana. Hardware spending fell by 29 percent compared to the same month last year, reaching levels not seen since the pandemic-induced shortages of 2020. Despite current ample hardware availability, high prices appear to have had a similar dampening effect on sales as product scarcity did during the pandemic.
This decline extends to physical software sales, which plummeted to an all-time low in July, a figure not recorded since tracking began in 1995. In the year-to-date period for new physical games, PlayStation accounted for 32 percent of spending, while Nintendo garnered 63 percent. This trend is particularly noteworthy as Sony plans to discontinue physical disc manufacturing for PlayStation consoles starting in January 2028.
The best-selling physical game in July was the PlayStation 4 and PlayStation 5 port of Call of Duty: Black Ops 2, with its accompanying bundle landing at fifth place. The combined sales of these two ports are estimated to be around 11 million copies. Other notable new releases in the top 10 included Assassin's Creed Black Flag Resynced, Splatoon Raiders, and EA Sports College Football 27. Halo: Campaign Evolved secured the sixth position, reportedly selling significantly less than the Black Ops ports.
Overall spending across games, hardware, and accessories combined decreased by 10 percent in July when compared to the previous year. Declines were observed across PC, console, and mobile gaming segments. Subscription services, however, continued to be the sole area of growth, increasing by 6 percent in July, mirroring June's performance. This suggests that with lower software and hardware sales, console owners are prioritizing existing titles and subscription services over purchasing new games.